Throughout the 1980’s there was a big time recession and increased dramatically in 1982. About half of the business was either nonexistent or bankrupt. While in the depression many people were affected by the bankruptcies and lose of work especially when many of the agricultural crops were decline. When this happened it actually hurt the economy more than it benefited it because although prices went down the taxes went up. After only a year there was an immense change in the economy and the U.S was now in a somewhat stable place now. The reason that the U.S was able to get back on their feet was because of an economic program Ronald Reagan came up with. The economic program was a theory that Reagan had, that was decrease the American peoples taxes so that they would keep more of what they earned and would then spend more. Not only would the people spend more but they would also invest and produce more jobs to help boost the economy. The U.S was doing a lot to try to help the people by cutting taxes and spending on the military and this plan backfired on them because as a result the federal budget increased beyond what is was before when the big time recession was happening and went from $74,000 million in 1980 to $221,000 million in 1986. After a year it dropped to about $155,000 million but shortly after began to grow again. Therefore the U.S was constantly digging themselves a hole with debt.
By: Eli Sibrian
Throughout the 1980’s there was a big time recession and increased dramatically in 1982. About half of the business was either nonexistent or bankrupt. While in the depression many people were affected by the bankruptcies and lose of work especially when many of the agricultural crops were decline. When this happened it actually hurt the economy more than it benefited it because although prices went down the taxes went up. After only a year there was an immense change in the economy and the U.S was now in a somewhat stable place now. The reason that the U.S was able to get back on their feet was because of an economic program Ronald Reagan came up with. The economic program was a theory that Reagan had, that was decrease the American peoples taxes so that they would keep more of what they earned and would then spend more. Not only would the people spend more but they would also invest and produce more jobs to help boost the economy. The U.S was doing a lot to try to help the people by cutting taxes and spending on the military and this plan backfired on them because as a result the federal budget increased beyond what is was before when the big time recession was happening and went from $74,000 million in 1980 to $221,000 million in 1986. After a year it dropped to about $155,000 million but shortly after began to grow again. Therefore the U.S was constantly digging themselves a hole with debt.